HTC won’t use cheap phones to bolster sales, CEO says

Troubled smartphone manufacturer HTC plans to sell only medium- to high-end handsets despite struggling to match sales of its competitors. “We don’t want to destroy our brand image,” HTC CEO Peter Chou said in an interview with The Wall Street Journal. “We insist on using better materials to make better products that offer premium experience. Many consumers like that.” The executive’s statements come at a time when many industry watchers are beginning to question HTC’s current strategy. While companies such as Motorola and Samsung are releasing low-end handsets in the blossoming Chinese market, Chao maintains that HTC won’t use “cheap, cheap phones” to boost its market share. The Taiwanese company instead plans to ramp up its marketing efforts and expand its distribution network to capitalize on emerging markets. Chou said Chinese shipments in 2012 will likely be three times last year’s total, and shipments to India and other emerging markets are steadily growing. “We think our strategy is successful,” the executive said.